Daily Bitcoin News - bankstershttp://dailybitcoin.news/tags/banksters
enCEO Reveals Bank of America Has Many Blockchain Patentshttp://dailybitcoin.news/content/ceo-reveals-bank-america-has-many-blockchain-patents
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p style="text-align:center"><img alt="" height="327" src="/sites/default/files/CEO-Reveals-Bank-of-America-Has-Many-Blockchain-Patents.jpg" width="600" /></p>
<p><strong>The vast majority of Wall Street-affiliated institutions have been larger promoters of the technology behind cryptocurrency: “Blockchain without bitcoin” is now the new mantra.</strong><br />
&nbsp;</p>
<h2>Bank of America Remains Skeptical</h2>
<p>However, November 2017 changed a few minds as temptation rose dramatically on the back of Bitcoin’s massive growth. Other cryptocurrencies including Ripple, Litecoin, and Ethereum, were also incurring quick gains and volume seldom seen for daily traded stocks on Wall Street. Big hitters like CBOE, CME and the Nasdaq surged towards the industry, and the rhetoric was broken. No more aversion to cryptocurrencies, it seemed.<br />
&nbsp;</p>
<p>Brian Moynihan, the CEO of the Bank of America (BoA), turned immediately to the topic of blockchain technology when asked for his sentiment on Bitcoin while attending the World Economic Forum gathering in Davos, Switzerland.<br />
&nbsp;</p>
<p>The chief executive told <em>Yahoo Finance</em> that BoA quite likely has more patents than any other competitor involved with blockchain technology.<br />
&nbsp;</p>
<blockquote><p><strong>“We believe in the idea of distributed ledgers, and smart contracts, and all the words you hear about that. We are developing stuff [but] it’s not new concepts.”</strong></p>
</blockquote>
<p>&nbsp;</p>
<p>Moynihan went on to reveal BoA’s view of blockchain and its potential applications. “The Registry of Motor Vehicles is a distributed ledger,” he said. “We know who owns a car, we know who owns a house. The idea is that you can do it more electronically, and can do it across borders.”<br />
&nbsp;</p>
<p>For Moynihan, the issue of cryptocurrency is wholly separate to blockchain technology in many important ways. Referring to bitcoin, he said: “The question of an anonymous currency, that’s a policy question that people have to answer. But the idea of digital movement of money, and blockchain, we’re all for.”<br />
&nbsp;</p>
<p>A search at the patent office reveals that BoA does, indeed, boast 48 patents and applications that are blockchain-related. Google’s patent database also shows that BoA owns 39 patents containing the word “cryptocurrency,” 36 that contain the word “Bitcoin” and 27 that employ the term “blockchain” in the registration documents.<br />
&nbsp;</p>
<p>Published information reveals that their most recent blockchain-inspired patent centers on a blockchain alias, with the purpose of facilitating intrapersonal payments.<br />
&nbsp;</p>
<h2>Blockchain: Plenty of Use Cases</h2>
<p>While it does seem that BoA leads the pack with the number of patents, they are by no means alone in their fraternity. In the world of banking, being able to enable transactions via blockchain represents massive savings if a bank can get it right.<br />
&nbsp;</p>
<p>Two representatives of the St Louis Federal Reserve bank published a paper on this concept, with the following statement an extract thereof:<br />
&nbsp;</p>
<blockquote><p><strong>“In addition, Wells Fargo has received patented protection for an application stemming from June 2017. Published very recently, the patent centers on an blockchain platform for global trade finance. The patent papers describe “generating a blockchain-based letter of credit (BLC) relating to a contract for a trade transaction between a seller and a buyer.”</strong></p>
</blockquote>
<p>&nbsp;</p>
<p>In 2016, Yahoo Finance reported that banks were scurrying to fill open positions for blockchain engineers. The exact depth of the sector’s interest and rollout remains to be seen, but numerous pilots have been lanced, and it seems inevitable that the technology will change banking forever.<br />
&nbsp;</p>
<p>While everyone may think of Ripple as a suitable alternative, their less visible but more persistent income stream seems to be developing blockchain technology exclusively for banks. Chain is another outfit blurring the lines between crypto and traditional banking. Outside of finance, Walmart has employed blockchain tech to track perishable shipments, and IBM has applied the tech within their business protocols.<br />
&nbsp;</p>
<p>Moynihan was less enthusiastic about the current volatile trading and “the speculative side” of cryptocurrencies, saying, “We can’t get in the middle of this. We don’t trade it, we don’t have anything to do with it, because that’s really up to people to make that decision, we’re not going to participate in it.”<br />
&nbsp;</p>
<p>While he was referring to bitcoin, he adamantly omitted using the name throughout the interview. That said, it seems Bank of America is keeping their options open on participating, just in case.</p>
<h2><strong><a href="https://bitcoinschannel.com/ceo-reveals-bank-of-america-has-many-blockchain-patents/">...</a></strong></h2>
<h2><strong><a href="https://bitcoinschannel.com/ceo-reveals-bank-of-america-has-many-blockchain-patents/">Source</a></strong></h2>
<p>&nbsp;</p>
</div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/bank-america" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Bank of America</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/blockchain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">blockchain</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/banksters" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">banksters</a></div></div></div>Fri, 26 Jan 2018 19:22:02 +0000dailybitcoinnews813 at http://dailybitcoin.newshttp://dailybitcoin.news/content/ceo-reveals-bank-america-has-many-blockchain-patents#commentsBanks and Regulators May Be Losing the War Against Cryptocurrencyhttp://dailybitcoin.news/content/banks-and-regulators-may-be-losing-war-against-cryptocurrency
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p style="text-align:center"><img alt="" height="327" src="http://dailybitcoin.news/sites/default/files/Banks-and-Regulators-May-Be-Losing-the-War-Against-Cryptocurrency.jpg" width="600" /></p>
<p><strong>Despite hostility from&nbsp;<a href="https://bitsonline.com/banks-cryptocurrency-ban/">banks like Capital One</a>&nbsp;and the recent mark of “<a href="https://bitsonline.com/results-red-tuesday-crypto-lost/">Red Tuesday</a>,” cryptocurrency is staying strong. Its popularity has grown so much, in fact, that it appears many banks are giving up their plights to halt digital coins in their tracks, and some are even dipping their fingers into the “crypto pool.”</strong></p>
<p>&nbsp;</p>
<h2>People Naturally Want What’s Hard to Get</h2>
<p>At the recent bitcoin conference in Miami, co-founder and CEO of Aidcoin Francesco Nazari Fusetti explained:<br />
&nbsp;</p>
<blockquote><p>“It’s impossible to ban bitcoin and cryptocurrency trading because the more you regulate, the more it will become popular.”</p>
</blockquote>
<p>&nbsp;</p>
<p>In many ways, regulating crypto is like trying to keep children away from a candy jar. The more you say no, the harder you work to keep the aside, the more tempting those sweets will become, and those kids will do just about anything and risk any punishment to get their hands on the sugary treasures before them.</p>
<p>&nbsp;</p>
<h2>&nbsp;</h2>
<h2>People Will Do What They Must to Obtain Bitcoin</h2>
<p>The crypto market is extremely attractive to financially disaffected young adults. The idea of having more control over one’s finances is something many of us would like to take advantage of, and the more banks get in the way, the more common trading will become.<br />
&nbsp;</p>
<p>CEO of Polymath Trevor Koverko points at&nbsp;<a href="https://bitsonline.com/warren-buffett-south-korea-bitcoin/">South Korea as the prime example</a>. The country’s strict guidelines surrounding bitcoin and cryptocurrency trading have made it the ultimate hotspot for digital coin love. South Korea currently accounts for nearly 30 percent of the world’s crypto trading, despite recent attempts to ban exchanges and halt cryptocurrency-related crimes.<br />
&nbsp;</p>
<p>“Such intervention will further squeeze the already heated South Korean market, further drive up spreads to other markets, and push order flow outside the country,”&nbsp;Koverko confidently states.<br />
&nbsp;</p>
<p>He believes if South Korea is ever dumb enough to implement further restrictions and make trades difficult, people will simply go elsewhere. Trades may stop in South Korea, but they won’t stop completely.<br />
&nbsp;</p>
<h2>&nbsp;</h2>
<h2>Crypto-Love Is Branching Out</h2>
<p>In addition to trading, cryptocurrency mining has experienced&nbsp;<a href="https://qz.com/1183173/cryptocurrency-mining-is-now-so-big-its-showing-up-in-tsmcs-earnings/">its fair surge in popularity</a>&nbsp;– so much, in fact, that mining revenue is now appearing on the earning statements of one of the world’s largest chip makers.<br />
&nbsp;</p>
<p>Taiwan Semiconductor Manufacturing Company (TSMC) builds over half the world’s computer chips, and recently reported second quarter income derived from a massive swell in crypto mining. Thus far, the money amassed sits somewhere between $350 and $400 million.<br />
&nbsp;</p>
<p>Co-chief executive officer Mark Liu explained, “We are quite certain that deep learning and blockchain technologies, which are the core technology of cryptocurrency mining, will lead to new ways of semiconductor innovation and demand for years to come.”<br />
&nbsp;</p>
<h2>&nbsp;</h2>
<h2>Banks Are Seeing the Benefits</h2>
<p>And in the ultimate “if you can’t beat ‘em, join ‘em” move, Japanese mega-bank Mitsubishi UFJ Financial Group has partnered with cryptocurrency exchange GDAX to roll out its own cryptocurrency (called MUFG) this coming March. The coin underwent beta testing in 2016, and executives feel its ready for widespread exposure.<br />
&nbsp;</p>
<p>So, the real question is whether bitcoin regulation really poses&nbsp;<em>that much</em>&nbsp;of a threat, in the grander existential sense Banks appear to be losing the war against crypto, and digital currency has made a deep-enough mark that any threats to bitcoin and its cousins likely won’t stop users from pursuing unregulated, financial independence.<br />
&nbsp;</p>
<p><strong><em>Could the day finally come when crypto replaces banks altogether? Post your comments below.</em></strong></p>
<h2><strong><a href="https://bitsonline.com/banks-regulators-crypto/">...</a></strong></h2>
<h2><strong><a href="https://bitsonline.com/banks-regulators-crypto/">Source</a></strong></h2>
<p>&nbsp;</p>
</div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/bitcoin" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Bitcoin</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/cryptocurrency" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">cryptocurrency</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/banksters" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">banksters</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/regulations" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">regulations</a></div></div></div>Fri, 19 Jan 2018 20:43:07 +0000dailybitcoinnews786 at http://dailybitcoin.newshttp://dailybitcoin.news/content/banks-and-regulators-may-be-losing-war-against-cryptocurrency#commentsMetropolitan Bank Ceases Cryptocurrency-Related International Wireshttp://dailybitcoin.news/content/metropolitan-bank-ceases-cryptocurrency-related-international-wires
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p style="text-align:center"><img alt="" height="327" src="/sites/default/files/Metropolitan-Bank-Ceases-Cryptocurrency-Related-International-Wires.jpg" width="600" /></p>
<p>
&nbsp;</p>
<p><strong>Metropolitan Bank Holding Corp (NYSE: MCB), one of the fastest growing banks in the United States, is used by a number of major cryptocurrency exchanges. But the NYSE traded bank has ceased all cryptocurrency-related international wires effective immediately, according</strong><strong> to a&nbsp;Fortune report.</strong></p>
<p>&nbsp;</p>
<h2>“The Bitcoin Bank” Says No to Bitcoin</h2>
<p>A Metropolitan customer revealed that his investment firm received a notice on Thursday morning that the bank was “ceasing all international crypto-related wire transfers to and from” it effective immediately. The bank claimed that they could not verify the compliance of international wire transfers for cryptocurrency accounts.<br />
&nbsp;</p>
<p>Metropolitan Bank is referred as “The Bitcoin Bank” since it has been used by cryptocurrency companies and investment firms for wire transfers and deposits<br />
&nbsp;</p>
<p>Digital currency wallet Coinbase is among one of the companies that uses it for wire transfers, deposits, and its Shift bitcoin debit card. As the bank hasn’t released any guidance on when it will restore the service, it’s unclear what might happen to the money that existing international clients have in the bank.<br />
&nbsp;</p>
<h2>More Problems Incoming</h2>
<p>Metropolitan Bank’s friendly attitudes towards cryptocurrency has played a role in its rapid growth. But the bank will probably lose traction with its move to shut down crypto-related services.<br />
&nbsp;</p>
<p>The decision also puts the bank and the investment firms in a precarious position. Investors’ money will not be returned as U.S. funds are currently holding the capital when conducting business with the bank on behalf of their international clients. It also raise concerns that non-U.S.-based funds who exclusively manage international investors’ money via Metropolitan Bank will be forced to freeze or completely shutter operations.<br />
&nbsp;</p>
<p>But the Fortune report noted that MCB’s crypto customers will likely have alternative banks to fall back on.</p>
<h2><strong><a href="https://news.bitcoin.com/metropolitan-bank-ceases-cryptocurrency-related-international-wires/">...</a></strong></h2>
<h2><strong><a href="https://news.bitcoin.com/metropolitan-bank-ceases-cryptocurrency-related-international-wires/">Source</a></strong></h2>
<p>&nbsp;</p>
</div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/bitcoin" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Bitcoin</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/metropolitan-bank-holding-corp" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Metropolitan Bank Holding Corp</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/bitcoin-exchange" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Bitcoin Exchange</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/crypto-exchange" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Crypto Exchange</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/banksters" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">banksters</a></div></div></div>Mon, 15 Jan 2018 18:48:56 +0000dailybitcoinnews772 at http://dailybitcoin.newshttp://dailybitcoin.news/content/metropolitan-bank-ceases-cryptocurrency-related-international-wires#commentsInsane South Korean Banks Reverse Decisions on Cryptocurrency Accountshttp://dailybitcoin.news/content/insane-south-korean-banks-reverse-decisions-cryptocurrency-accounts
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p style="text-align:center"><img alt="" height="327" src="/sites/default/files/Insane-South-Korean-Banks-Reverse-Decisions-on-Cryptocurrency-Accounts.jpg" width="600" /></p>
<p><strong>South Korean banks have backtracked from their decisions to stop servicing cryptocurrency accounts as crypto investors protested and the government re-discussed its policy. The country’s 6 major banks have been told that they must follow through with the original plan and install the system that would end the anonymous trading of cryptocurrencies.</strong></p>
<p>&nbsp;</p>
<h2>Banks U-Turned</h2>
<p>South Korean banks have reportedly reversed their decisions to stop servicing cryptocurrency accounts. “They will stick to their initial plans to allow clients to open accounts for cryptocurrency transactions using their real names within the month,” Korea Joongang Daily reported.<br />
&nbsp;</p>
<p>The original plan has been for banks to stop issuing virtual accounts and install the new government-mandated, real-name identification system. From that point on, they would only issue real name accounts. This new system is expected to be introduced around January 20.<br />
&nbsp;</p>
<p>The news outlet detailed:<br />
&nbsp;</p>
<blockquote><blockquote><p>The country’s financial regulator has pushed banks to stop opening new accounts until they establish a way to verify that the accounts bear the real name of the customer, to prevent money laundering.</p>
</blockquote>
</blockquote>
<p>&nbsp;</p>
<p>Last week, the regulators began inspecting the country’s 6 major banks to ensure they have fulfilled their anti-money laundering (AML) obligations with regard to virtual account services, as news.Bitcoin.com reported.<br />
&nbsp;</p>
<p>While the inspections will not conclude until January 16, some banks&nbsp;decided to pull out of servicing cryptocurrency accounts “due to strong pressure from financial authorities” and criticism that “banks are supporting virtual currency transactions,” Money Today described.<br />
&nbsp;</p>
<p>The regulators then informed the 6 banks that their decisions regarding whether to service crypto accounts do not have any bearing on their obligations to install the new real-name system. As such, banks agreed to install the new system as planned. The Korean Financial Services Commission (FSC) said Sunday, as reported by Korea Joongang Daily:<br />
&nbsp;</p>
<blockquote><blockquote><p>Banks will open new accounts after it [FSC] releases guidelines about avoiding money laundering.</p>
</blockquote>
</blockquote>
<h2>&nbsp;</h2>
<h2>Shinhan Bows to Investor Complaints</h2>
<p>Among the banks that decided to stop servicing cryptocurrency accounts was Shinhan Bank. A letter regarding this decision was immediately sent to the crypto exchanges currently using the bank’s virtual account services, including the country’s largest exchange Bithumb.<br />
&nbsp;</p>
<p>Following the bank’s announcement, “some Shinhan users – possibly bitcoin traders – threatened a boycott of the bank,” the publication noted. Yonhap elaborated:<br />
&nbsp;</p>
<blockquote><blockquote><p>After the news was announced, investors rebelled and the financial authorities decided to re-discuss the policy when they asked for a real-name confirmation service.</p>
</blockquote>
</blockquote>
<p>&nbsp;</p>
<p>Shinhan Bank subsequently reversed its decision, stating that the bank will review its virtual account opening policy and “will allow deposits to existing virtual accounts for the time being,” the news outlet detailed.<br />
&nbsp;</p>
<p>Korea Joongang Daily added, “Shinhan Bank notified major local cryptocurrency exchanges such as Bithumb and Korbit that they should come up with measures to get rid of existing anonymous accounts.”<br />
&nbsp;</p>
<p>While it remains possible for Shinhan Bank users to deposit into existing virtual accounts, the government announced on Sunday that anyone doing so would face a fine&nbsp;once the real-name system is implemented.</p>
<h2><strong><a href="https://bitcoinschannel.com/south-korean-banks-reverse-decisions-on-cryptocurrency-accounts/">...</a></strong></h2>
<h2><strong><a href="https://bitcoinschannel.com/south-korean-banks-reverse-decisions-on-cryptocurrency-accounts/">Source</a></strong></h2>
<p>&nbsp;</p>
</div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/bitcoin" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Bitcoin</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/cryptocurrencies" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Cryptocurrencies</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/banksters" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">banksters</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/south-korea" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">south korea</a></div></div></div>Mon, 15 Jan 2018 16:18:10 +0000dailybitcoinnews768 at http://dailybitcoin.newshttp://dailybitcoin.news/content/insane-south-korean-banks-reverse-decisions-cryptocurrency-accounts#commentsWhistleblower Details Big Bank’s Plans to Prohibit Employees Owning Bitcoinhttp://dailybitcoin.news/content/whistleblower-details-big-bank%E2%80%99s-plans-prohibit-employees-owning-bitcoin
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p style="text-align:center"><img alt="" height="327" src="/sites/default/files/Whistleblower-Details-Big-Bank%E2%80%99s-Plans-to-Prohibit-Employees-Owning-Bitcoin.jpg" width="600" /></p>
<p><b>This week </b><b><i>News.Bitcoin.com</i></b><b> carried the breaking story alleging employees of giant Northern European bank Nordea were being forbidden by company policy from owning or trading cryptocurrency. Since publication, a bank employee, who wishes to remain anonymous, forwarded evidence the large institution is indeed going ahead with such plans.</b></p>
<p>&nbsp;</p>
<h2>Nordea Bank Whistleblower</h2>
<p>Word spread 12 January 2018 on <a href="https://twitter.com/samisin/status/951787301981556736" rel="noopener" target="_blank">Twitter</a> Nordea Bank “forbids all their employees (at least in Sweden) to stop owning and trading $btc and other crypto currency. This applies to secretaries, IT personal, cleaners and any bank staff employed by the company. Is it legal even?,” asked Twitter user @samisin.<br />
&nbsp;</p>
<p>Nordea Bank AB has more than half a trillion dollars in assets, and is one of the largest banks in Northern Europe. Its alleged move against employees’ cryptocurrencies were not all that surprising when placed in the backdrop of the bank’s executive team’s disparaging public comments. Executives have long worried about cryptocurrency and its lack of regulation, and more recently complained about the fact bitcoin was allowed to exist without jumping through all the hoops of the traditional banking system, referring to the phenomenon as “a joke.”<br />
&nbsp;</p>
<p>Bitcoin’s value, however, is exactly that: it could not have existed if brought through the regular cartel channel of state-backed banks such as Nordea. Its precise reason for being is to defy minders and bureaucratic middle persons, landing in the hands of ordinary, uncredentialed and unlicensed peoples.<br />
&nbsp;</p>
<p>After <i>News.Bitcoin.com</i> published the story, a whistleblower came forward with documentation on the assurance of anonymity.<br />
&nbsp;</p>
<p>According to memorandums obtained by <em>News.Bitcoin.com</em>, a decision by Nordea’s board was made 13 December 2017. The message’s import was to affirm no employees of the bank were allowed to trade bitcoin nor other cryptocurrencies. When queried about what to do with crypto already held by employees, an answer was not immediately forthcoming.</p>
<p style="text-align:center"><img alt="" height="491" src="/sites/default/files/1_18.jpg" width="600" /></p>
<h2>
Trade Union Might Take Up Cause</h2>
<p>The memos were pulled from Yammer, a social networking site used by some businesses for private communication. Its network is open by invite only.<br />
&nbsp;</p>
<p>A second communication from the bank further outlined coming policy: The ban will be effective late February due to “its highly speculative nature, including high investment/volatility risk, and the related tax evasion and money laundering risks,” the source details. New rules also include how unless “otherwise stated, the rules set forth in this section apply to all transactions. Therefore, it is irrelevant whether they are carried out on [a personal] account, on behalf of a Closely Related Person, a customer, the Group, or on behalf of another party within or outside the scope of work,” the memo reads.<br />
&nbsp;</p>
<p>Furthermore, “No Employee, Service Provider or Tied Agent at the Group may: Conduct trading in Bitcoins and other Cryptocurrencies.” Exemptions are being provided for if investments “in financial instruments manufactured by Nordea linked to cryptocurrencies. Further, the prohibition does not cover minor investments in cryptocurrency made by employees in product development roles who have a work-related reason to do so, and where the respective Head of the BA/GF has pre-approved the investment following consultation with Group Compliance,” the bank explained. There appears to also be “special circumstances” clause as well.<br />
&nbsp;</p>
<p>When the anonymous source was asked about employees’ feelings on the matter, “Regarding the workers, as far as I know many care and think this policy is way to far reaching when it comes to their right to own whatever legal property they wish, and therefore complaints have also been made to the union Finansförbundet,” we were told.<br />
&nbsp;</p>
<p>As a result of “complaints by employees,” the 33,000 member trade union Financial Sector Union of Sweden, Finansförbundet, representing bank employees, is reportedly set to discuss a formal response during an internal meeting this Tuesday, 16 January 2018. &nbsp;</p>
<h2><strong><a href="https://bitcoinschannel.com/whistleblower-details-big-banks-plans-to-prohibit-employees-owning-bitcoin/">...</a></strong></h2>
<h2><strong><a href="https://bitcoinschannel.com/whistleblower-details-big-banks-plans-to-prohibit-employees-owning-bitcoin/">Source</a></strong></h2>
<p>&nbsp;</p>
</div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/bitcoin" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Bitcoin</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/banksters" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">banksters</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/whistle-blowers" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Whistle Blowers</a></div></div></div>Sun, 14 Jan 2018 18:01:12 +0000dailybitcoinnews765 at http://dailybitcoin.newshttp://dailybitcoin.news/content/whistleblower-details-big-bank%E2%80%99s-plans-prohibit-employees-owning-bitcoin#commentsWarren Buffet Admits Ignorance While Slamming Cryptocurrencieshttp://dailybitcoin.news/content/warren-buffet-admits-ignorance-while-slamming-cryptocurrencies
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p style="text-align:center"><img alt="" height="327" src="/sites/default/files/Warren-Buffet-Admits-Ignorance-While-Slamming-Cryptocurrencies.jpg" width="600" /></p>
<p dir="ltr"><a href="http://www.cointelegraph.com/tags/bitcoin" target="_blank">Bitcoin</a>&nbsp;and other cryptocurrencies will definitely come to a bad end,<a href="https://www.cnbc.com/2018/01/10/buffett-says-cyrptocurrencies-will-almost-certainly-end-badly.html">&nbsp;</a>according to the ‘Oracle of Omaha’,&nbsp;<a href="https://cointelegraph.com/tags/warren-buffett" target="_blank">Warren Buffet</a>. In an&nbsp;<a href="https://www.cnbc.com/2018/01/10/buffett-says-cyrptocurrencies-will-almost-certainly-end-badly.html" rel="nofollow" target="_blank">interview with CNBC</a>&nbsp;Jan. 10, billionaire manager of Berkshire Hathaway investment group said he believes that there is no possible positive outcome for the nascent financial technology:<br />
&nbsp;</p>
<blockquote><p>"In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending. When it happens or how or anything else, I don't know.”</p>
</blockquote>
<p dir="ltr">
The investment tycoon also indicated that he has nothing invested in Bitcoin or other cryptocurrencies, either long or short, stating:<br />
&nbsp;</p>
<blockquote><p dir="ltr">“If I could buy a five-year put on every one of the cryptocurrencies, I'd be glad to do it but I would never short a dime's worth. We don't own any, we're not short any, we'll never have a position in them.”</p>
</blockquote>
<p dir="ltr">
A 'put' is a type of option contract that allows investors to sell certain securities at a specified price in a specified time. An investor would purchase a put option if they believed the underlying security -- in Buffet's case, all cryptocurrencies -- were going to decrease in value.<br />
&nbsp;</p>
<h2>FUD or fundamentals?</h2>
<p>While the clear concerns from Buffet may scare investors, many in the cryptocurrency world would likely see them as&nbsp;<a href="https://cointelegraph.com/news/got-any-fud-bitcoin-naysayers-new-critiques-sound-increasingly-desperate" target="_blank">FUD - short for fear, uncertainty and doubt</a>. One reason is Buffet’s own admitted lack of knowledge about cryptocurrencies. In the interview he told reporters:<br />
&nbsp;</p>
<blockquote><p>"I get into enough trouble with things I think I know something about. Why in the world should I take a long or short position in something I don't know anything about.”</p>
</blockquote>
<p dir="ltr">
&nbsp;Buffet has&nbsp;previously shared&nbsp;his opinion that Bitcoin and other cryptocurrencies are bubbles.</p>
<h2><strong><a href="https://cointelegraph.com/news/warren-buffet-admits-ignorance-while-slamming-cryptocurrencies">...</a></strong></h2>
<h2><strong><a href="https://cointelegraph.com/news/warren-buffet-admits-ignorance-while-slamming-cryptocurrencies">Source</a></strong></h2>
<p>&nbsp;</p>
</div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/bitcoin" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Bitcoin</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/cryptocurrencies" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Cryptocurrencies</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/banksters" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">banksters</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/warren-buffet" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Warren Buffet</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/fud" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">FUD</a></div></div></div>Wed, 10 Jan 2018 19:40:20 +0000dailybitcoinnews747 at http://dailybitcoin.newshttp://dailybitcoin.news/content/warren-buffet-admits-ignorance-while-slamming-cryptocurrencies#commentsJamie Dimon: "I Regret Calling Bitcoin A Fraud"http://dailybitcoin.news/content/jamie-dimon-i-regret-calling-bitcoin-fraud
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p style="text-align:center"><img alt="" height="327" src="/sites/default/files/Jamie-Dimon-I-Regret-Calling-Bitcoin-A-Fraud.jpg" width="600" /></p>
<p>Less than four months after Jamie Dimon <a href="https://www.zerohedge.com/news/2017-09-12/bitcoin-tumbles-after-jamie-dimon-calls-it-fraud-would-fire-anyone-trading-it">lashed out at bitcoin</a>, warning that it was would "eventually blow up" because it was "worse than tulip bulbs" and that "any trader trading bitcoin" will be "fired for being stupid", the JPMorgan CEO said he "regrets" his infamous criticism of bitcoin, in which he <a href="https://www.zerohedge.com/news/2017-09-12/bitcoin-tumbles-after-jamie-dimon-calls-it-fraud-would-fire-anyone-trading-it">called the cryptocurrency a "fraud</a>."<br />
&nbsp;</p>
<p>In an interview with FOX Business' Maria Bartiromo, Dimon repented, softening the comments he made in a September banking conference, saying <strong>"I regret making them."</strong><br />
&nbsp;</p>
<p>While Dimon said that he personally is still "not interested in the subject at all" he conceded that blockchain "is real." Dimon also softened his tone on initial coin offerings, saying that ICOs need to be reviewed “individually”.<br />
&nbsp;</p>
<p><strong>"The blockchain is real. You can have crypto yen and dollars and stuff like that. ICO's you have to look at individually", </strong>Dimon told Bartiromo.<br />
&nbsp;</p>
<p>"The bitcoin to me was always what the governments are gonna feel about bitcoin as it gets really big, and I just have a different opinion than other people. I'm not interested that much in the subject at all."<br />
&nbsp;</p>
<p>Until today's recantation, Dimon was one of the highest-profile bitcoin skeptics on Wall Street. His remarks in September were met with anger from many in the cryptocurrencies community, but also echoed by other top executives, including Larry Fink, chairman and chief executive of BlackRock.<br />
&nbsp;</p>
<p>Since then, the acceptance of bitcoin has moved to the institutional arena with both the cboe and CME launching bitcoin futures, while Goldman is preparing a cryptocurrency trading desk. It was only a matter of time before Dimon realized all the potential lost revenue, and rushed back in to avoid losing even more market share.</p>
<h2><strong><a href="https://www.zerohedge.com/news/2018-01-09/jamie-dimon-i-regret-calling-bitcoin-fraud">...</a></strong></h2>
<h2><strong><a href="https://www.zerohedge.com/news/2018-01-09/jamie-dimon-i-regret-calling-bitcoin-fraud">Source</a></strong></h2>
<p>Also read:&nbsp;<a href="http://dailybitcoin.news/content/here-come-bogus-bitcoin-scare-tactics">Here Come the Bogus Bitcoin Scare Tactics</a><br />
Also read:&nbsp;<a href="http://dailybitcoin.news/content/jpmorgan-handles-bitcoin-related-trades-clients-despite-ceo-warning">JPMorgan handles bitcoin-related trades for clients despite CEO warning</a><br />
Also read:&nbsp;<a href="http://dailybitcoin.news/content/bitcoin-revolution-and-great-central-bank-divide">Bitcoin Revolution and The Great Central Bank Divide</a><br />
Also read:&nbsp;<a href="http://dailybitcoin.news/content/ceo-america%E2%80%99s-biggest-bank-says-bitcoin-fraud-%E2%80%93-only-murderers-drug-dealers-and-people">The CEO of America’s biggest bank says Bitcoin is a fraud – Only for murderers, drug dealers and people living in Venezuela or North Korea</a><br />
Also read:&nbsp;<a href="http://dailybitcoin.news/criminal-dimon">JP Morgan CEO who said only criminals use bitcoins is accused by a Senator of illegal activities. He responds by smiling and saying, “So hit me with a fine. We can afford it"</a><br />
Also read:&nbsp;<a href="http://dailybitcoin.news/content/%E2%80%98i-remain-highly-skeptical%E2%80%99-jamie-dimon-breaks-silence-bitcoin-futures-launch">‘I Remain Highly Skeptical’: Jamie Dimon Breaks Silence on Bitcoin as Futures Launch</a></p>
</div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/bircoin" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Bircoin</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/banksters" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">banksters</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/jp-morgan" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">JP Morgan</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/jamie-dimon" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Jamie Dimon</a></div></div></div>Tue, 09 Jan 2018 14:18:19 +0000dailybitcoinnews734 at http://dailybitcoin.newshttp://dailybitcoin.news/content/jamie-dimon-i-regret-calling-bitcoin-fraud#commentsHow Will Bitcoin Perform During The Next Financial Crisis Created By International Banking Cartels and Wallstreet?http://dailybitcoin.news/content/how-will-bitcoin-perform-during-next-financial-crisis-created-international-banking-cartels
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p style="text-align:center"><img alt="" height="327" src="/sites/default/files/How-Will-Bitcoin-Perform-During-The-Next-Financial-Crisis-Created-By-International-Banking-Cartels-and-Wallstreet.jpg" width="600" /></p>
<p>You will see in the headlines that Bitcoin is a bubble and that you should not&nbsp;<a href="https://paxful.com/buy-bitcoin" rel="noopener" target="_blank">buy Bitcoin</a>&nbsp;because it is about to burst but this could not be farther from the truth. What the mainstream media are not paying any attention to are the huge stock market and real estate bubbles. When the price of BTC drops dramatically the world economy does not come to a standing still halt as has been proven since 2008. When the stock market or real estate markets crash it causes great economic disasters that can take years or even decades with the size of the current market to fully recover from.<br />
&nbsp;</p>
<p>It is not just the stock market and real estate bubbles that once pop will bring the house of cards down with it. The most worrying sector is the derivatives market which has never been so large before. These financial instruments have brought around great depressions and used to be banned until Bill Clinton made them legal again. The bonds market is also another bubble on its way to bursting and if this happens hyperinflation will be one of the biggest problems faced by governments. History shows us that this all will come to fruition, it is just a matter of when.<br />
&nbsp;</p>
<p>The question is what will happen to Bitcoin and Cryptocurrencies once the financial collapse takes place. The signs are that when economic circumstances start to deteriorate the price of Bitcoin rises. A prime example of this is during the Cyprus and Greece bailout which saw the price of BTC rise considerably during this period. With banks stopping access to cash in ATM machines, Bitcoin was the perfect solution to be able to store it safely out of the banks and Governments’ hands.<br />
&nbsp;</p>
<p>What also happens during a depression is interest rates skyrocket and start to see hyperinflation. This will mean it is extremely hard to get finance from banks and the cost can make it unsustainable. The ICO market is a perfect solution to this problem and as the banking sector suffers, ICOs will boom. More companies will look to these as a cheap way to raise money and will create their own cryptocurrency.<br />
&nbsp;</p>
<p>If the derivatives market crashes, there is not enough money to solve it as the sector is over 10 times the size of the global banking sector. Governments will need to find new solutions for money and finance due to total failure of the banks. There are two options when this happens. The first is world war 3 and the second is adopting the Blockchain and Cryptocurrency to provide a fairer, more transparent financial system that rewards its users, and not steal from them.<br />
&nbsp;</p>
<h2>Conclusion</h2>
<p>It is certain that during our lifetimes the financial system will need to be completely revamped. When this takes place it is going to be one of the most dangerous in our history. Luckily we have a solution and it is called cryptocurrency, it just needs one nation to fully adopt it as a national currency and then the other will follow.<br />
&nbsp;</p>
<h2><strong><a href="https://www.newsbtc.com/2018/01/07/bitcoin-performance-during-next-financial-crisis/">...</a></strong></h2>
<h2><strong><a href="https://www.newsbtc.com/2018/01/07/bitcoin-performance-during-next-financial-crisis/">Source</a></strong></h2>
<p>&nbsp;</p>
</div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/bitcoin" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Bitcoin</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/banksters" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">banksters</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/wallstreet" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Wallstreet</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/economic-collapse" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">economic collapse</a></div></div></div>Sun, 07 Jan 2018 23:06:16 +0000dailybitcoinnews733 at http://dailybitcoin.newshttp://dailybitcoin.news/content/how-will-bitcoin-perform-during-next-financial-crisis-created-international-banking-cartels#commentsUS Treasuries on a Decline since 1987: Can Bitcoin Pop the Globalist Fiat Bubble?http://dailybitcoin.news/content/us-treasuries-decline-1987-can-bitcoin-pop-globalist-fiat-bubble
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p style="text-align:center"><img alt="" height="327" src="/sites/default/files/US-Treasuries-on-a-Decline-since-1987-Can-Bitcoin-Pop-the-Globalist-Fiat-Bubble.jpg" width="600" /></p>
<p>
&nbsp;</p>
<p><strong>During late 2017, bitcoin investor Freddy Callan&nbsp;<a href="https://twitter.com/descallan/status/938643531924758534?lang=en" rel="noopener" target="_blank" title="">stated</a>&nbsp;“Bitcoin isn’t a bubble, it’s the pin,” emphasizing the disruptive nature of the cryptocurrency and its ability to compete against the global banking system as the premier store of value and digital currency.</strong><br />
&nbsp;</p>
<p>For many years, so-called&nbsp;<a href="https://btcmanager.com/why-conventional-economists-still-push-bitcoin-is-criminal-money-narrative/" rel="noopener" target="_blank" title="">economists have continued to condemn bitcoin</a>&nbsp;by criticizing its lack of supporting, real-world assets and intrinsic value, despite the fact that no asset or currency in the global market has intrinsic value.<br />
&nbsp;</p>
<p>As bitcoin critic-turned investor Mark Cuban explained, the value of the cryptocurrency is always subjective, and it depends on the demand and the supply conditions.&nbsp;<a href="https://www.bloomberg.com/news/videos/2017-10-03/mark-cuban-confirms-stakes-in-twitter-and-bitcoin-video" rel="noopener" target="_blank" title="">He said</a>:<br />
&nbsp;</p>
<blockquote><p><b>“It is interesting because there are a lot of assets which their value is just based on supply and demand. Most stocks, there is no intrinsic value because you have no true ownership rights and no voting rights. You just have the ability to buy and sell those stocks. Bitcoin is the same thing. Its value is based on supply and demand. I have bought some through an ETN based on a Swedish exchange.”</b></p>
</blockquote>
<p>
On December 26, 2017, widely recognized financial news publication&nbsp;<a href="https://www.zerohedge.com/news/2017-12-26/most-important-chart-world" rel="noopener" target="_blank" title=""><em>Zerohedge</em></a>&nbsp;released a chart entitled “The Most Important Chart in the World,” that demonstrated the consistent decline of the US Treasury (UST) since 1987. The visualization showed that the fiat currency system of the US, which operates as one of the few reserve currencies that support the global monetary system, has been on a decline.<br />
&nbsp;</p>
<p style="text-align:center"><img alt="" height="259" src="/sites/default/files/1_14.jpg" width="600" /></p>
<p>
Investopedia, which recently announced bitcoin as the “2017 Term of the Year,” describes a bubble as “a surge in asset prices unwarranted by the fundamentals of the asset and driven by exuberant market behavior. When no more investors are willing to buy at the elevated price, a massive sell-off occurs, causing the bubble to deflate.”<br />
&nbsp;</p>
<p>As portrayed by the chart above, investors in both the domestic US market and the global market have clearly struggled to support the value of the US Treasury, and in the long-term, a similar trend is likely to be shown. Analysts have also predicted the value of the US dollar to continue decreasing throughout 2018, even though a 14-year low was recorded in 2017.<br />
&nbsp;</p>
<p>“We have a negative bias on the dollar, which is extraordinary considering that interest rates are going to rise at a very good clip. It got too strong before January, and the other factor is that global growth is very strong,” Jens Nordvig, CEO of Exante Data,&nbsp;<a href="https://www.cnbc.com/2017/12/29/dollar-could-follow-2017-with-another-weak-year.html" rel="noopener" target="_blank" title="">told&nbsp;<em>CNBC</em></a>.<br />
&nbsp;</p>
<p>While the&nbsp;<a href="https://btcmanager.com/bitcoin-price/" rel="noopener" target="_blank" title="">price of bitcoin</a>&nbsp;has entered 2018 with an annual gain of nearly 14-fold, nevertheless it has experienced significant price corrections on many occasions. The short-term corrections of bitcoin have prevented bubbles from forming in the market, shaking out ‘weak hands’ and further stabilizing the market.<br />
&nbsp;</p>
<p>Hence, the term bubble is more applicable to the long-term trend of the US dollar, the US Treasury, and the global fiat currency system, rather than bitcoin itself.</p>
<h2><strong><a href="https://btcmanager.com/us-treasury-decline-since-1987-can-bitcoin-pop-the-fiat-bubble/">...</a></strong></h2>
<h2><strong><a href="https://btcmanager.com/us-treasury-decline-since-1987-can-bitcoin-pop-the-fiat-bubble/">Source</a></strong></h2>
<p>&nbsp;</p>
</div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/bitcoin" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Bitcoin</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/globalism" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Globalism</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/fiat" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Fiat</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/us-treasuries" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">US Treasuries</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/banksters" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">banksters</a></div></div></div>Thu, 04 Jan 2018 21:59:50 +0000dailybitcoinnews724 at http://dailybitcoin.newshttp://dailybitcoin.news/content/us-treasuries-decline-1987-can-bitcoin-pop-globalist-fiat-bubble#commentsScam Alert: Ripple Gateways Can Freeze Users’ Funds at Any Timehttp://dailybitcoin.news/content/scam-alert-ripple-gateways-can-freeze-users%E2%80%99-funds-any-time
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p style="text-align:center"><img alt="" height="327" src="/sites/default/files/Scam-Alert-Ripple-Gateways-Can-Freeze--Users%E2%80%99-Funds-at-Any-Time.jpg" width="600" /></p>
<p>Editor's Note: This was why cryptocurrencies came onto the scene in the first place, to stop this sort of nonsense that corrupt individuals/banks cause upon the planet...Nowonder Bernanke and other criminal banksters like Ripple. Ripple is not a cryptocurrency, but another scam bank fraud. Beware.</p>
<hr />
<p><strong>Ripple has been the talk of the town lately thanks to its rocketing value and growing market capitalization that’s making eyes at bitcoin. $1,000 of XRP bought a year ago would be worth half a million dollars today. But away from the price action, there’s an issue bugging ripple that just won’t go away. It’s been alleged for years that Ripple Labs has the power to freeze the balances of account holders. If true, it would be a major cause for concern, especially for proponents of decentralized currency.</strong></p>
<p>&nbsp;</p>
<h2>The Big Freeze</h2>
<p>The origins of the Ripple freeze go as follows: In August 2014, Ripple quietly introduced a feature called Freeze. It was put to the test a few months later when Ripple cofounder Jed McCaleb tried to cash out some of his billions in XRP after leaving the company. He’d previously signed an agreement to sell no more than $10,000 of XRP a week, only to attempt to clear $1 million worth through Bitstamp in one go.<br />
&nbsp;</p>
<p>Upon learning of McCaleb’s actions, Ripple intervened and prevented him from doing so, utilizing its Balance Freeze feature. Built into Ripple gateways such as Bitstamp by default, it enables the company to stop the movement of XRP. During the brouhaha that followed, Bitstamp, caught in the middle, filed a lawsuit to settle the dispute between McCaleb and Ripple Labs.<br />
&nbsp;</p>
<p>2015 was a lifetime ago in cryptocurrency, and a lot has happened since then to all of the players caught up in the spat, and to the industry as a whole. Bitstamp, Ripple, and McCaleb would all aver that they’ve moved on to bigger and better things: the former reporting record turnover and trading volume, and McCaleb launching Stellar, whose market cap has quadrupled in a matter of days, catapulting it into the top 10. And then there’s Ripple, which is going great guns.<br />
&nbsp;</p>
<h2>The Case for the Defense</h2>
<p>Ripple’s transformation from sluggish cryptocurrency into the hottest ticket in town has been rapid: three months ago, no one wanted to know. Now, traders of all genders, demographics, and territories are invested in ripple, and not just financially, but emotionally too. Anyone who buys an unfancied coin and then watches it moon can’t help but feel a sense of vindication, and a newfound appreciation for the project. At this stage, anything that threatens the coin’s upward trajectory – such as negative news – risks being shot down.<br />
&nbsp;</p>
<p>In a report on ripple’s meteoric rise this week, news.Bitcoin.com mentioned the “big freeze”, linking to another recent article on the site which explains this in more detail. Ripple’s defenders hotly dispute the facts of the matter, though, highlighting a sentence on Ripple’s Freeze page which states: “No one can freeze XRP”.<br />
&nbsp;</p>
<p>So what’s the truth of the matter? Can Ripple freeze users’ funds or not?<br />
&nbsp;</p>
<h2>An Uncomfortable Half-Truth</h2>
<p>The answer to Ripple’s capabilities lies in a document the company released in 2014 introducing Balance Freeze and stating:<br />
&nbsp;</p>
<blockquote><blockquote><p>The freeze protocol extension gives gateways the ability to…freeze funds issued to a particular user. Frozen funds may only be sent back to the gateway who issued them. The global freeze feature allows a gateway to freeze all balances issued by it.</p>
</blockquote>
</blockquote>
<p>
When you purchase cryptocurrency on an exchange, your account is assigned a virtual balance – a token essentially – correlating to your holdings. Buy 1 BTC, for example, and nothing moves on the blockchain. All that happens is that your USD and BTC account balances are updated. It’s only once a user makes a withdrawal request that an on-chain transaction takes place.<br />
&nbsp;</p>
<p>Ripple uses a distributed ledger called the Ripple protocol which each Ripple gateway – essentially a bank – keeps a record of. Bitstamp, Gatehub, and The Rock Trading are some of the major gateways partnered with Ripple. Purchase ripple on Bitstamp, for example, and the transaction won’t show up on the Ripple protocol. The ledger will only record the movement of funds when they are withdrawn from the Bitstamp wallet to the customer’s XRP wallet.<br />
&nbsp;</p>
<p style="text-align:center"><img alt="" height="181" src="/sites/default/files/1_15.png" width="600" /></p>
<p>The phrase “No one can freeze XRP” is thus a half-truth. Ripple does not possess the power to magically remove the funds from a customer’s personal XRP wallet. For example, it can’t plunder the funds that a holder has stored on their Nano S. If those funds are stored with a Ripple gateway that hasn’t opted out of Freeze, however, they can be locked up. Not only can the XRP be frozen, but so can the account balances associated with its sale, such as USD.<br />
&nbsp;</p>
<p>Ripple’s defenders claim that in this respect, ripple is no different from any other cryptocurrency. If Ethereum’s Vitalik Buterin had 10,000 ETH stolen from him and sent to Bitstamp, for example, he could probably pressure the exchange into freezing that ether while the matter was investigated. The difference with Ripple is that the company has developed a special relationship with its gateways which gives these “banks” unprecedented powers to freeze individual counts on a whim, or on the say-so of Ripple, law enforcement, or regulators.<br />
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<p>Not only does Ripple encourage the XRP of suspicious accounts to be frozen, but “The financial institution should also freeze the counterparty in any other systems the financial institution operates that are connected to the XRP Ledger”. Your bitcoin; your litecoin; your euros; anything connected to a Ripple gateway can be locked down. No other cryptocurrency has a similar framework in place, which grants exchanges unprecedented powers to lock up funds at the drop of a hat.<br />
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<h2>A Frosty Reception for Centralized Currencies</h2>
<p>No one is suggesting that Ripple Labs has a desire to freeze anyone’s funds. That’s not good for business. Nevertheless, a cryptocurrency which enables a centralized authority to freeze funds at the touch of a button defeats the entire purpose of cryptocurrency. Most people have no objection to stemming the funding of terrorists and money launderers. Once a kill switch is created, however, it leads to a slippery slope in which anyone suspected of misbehavior can have their funds seized.<br />
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<p>As Ripple explains, the feature provides the ability “to freeze individual accounts issuances in order to investigate suspicious activity”. Owning XRP in a country that is hostile to cryptocurrency; possessing an unusually large amount of XRP; signing up to a Ripple gateway exchange from a banned country: all could be grounds for freezing your account.<br />
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<p>If law enforcement suspected a cryptocurrency holder was engaged in criminal behavior, they could try to obtain a subpoena granting permission to seize that individual’s exchange balance – and would be required to submit evidence to show there was probable cause for doing so. But if that exchange happened to be a Ripple gateway, they could simply pick up the phone and ask for the Big Button of Freeze to be pressed. And that’s the difference between ripple and other cryptocurrencies.<br />
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<p style="text-align:center"><img alt="" height="130" src="/sites/default/files/2_17.png" width="600" /></p>
<p>
Keeping so much as 1 XRP on a gateway exchange would technically be enough to see all of your fiat and crypto balances frozen. There are ways to obtain and transact XRP without going near a gateway that possesses special powers. In a world of decentralized cryptocurrencies, however, purveyors of financial freedom may prefer to look elsewhere.</p>
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</div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/cryptocurrencies" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Cryptocurrencies</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/ripple" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Ripple</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/scams" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">scams</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/banksters" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">banksters</a></div></div></div>Thu, 04 Jan 2018 21:02:05 +0000dailybitcoinnews723 at http://dailybitcoin.newshttp://dailybitcoin.news/content/scam-alert-ripple-gateways-can-freeze-users%E2%80%99-funds-any-time#comments